Capital Gains Tax

Tax queries 457 views 2 replies

H.K.Sood

Society

44 Points Posted on 09 May 2010

A house built in 1977 was sold in May 2008 for Rs.85.00 lacs after indexation the indexed cost was 36.00 lacs and the capital gain was 49.00. Exemption u/s 54 was taken being amount invested in purchase of residential plot for Rs.53.65 lacs. In Nov 2008. No construction has been done on this plot and now I want to sell this plot and buy a house from the sale proceeds. What is the position regarding exemption already availed under Capital Gains. Shall I have to pay tax now ? What shall be the position as regards to the second transaction i.e. sale of plot and purchase of house?

Replies (2)

vikash rathi

Chartered Accountant

787 Points Posted on 09 May 2010

yes u have to pay tax now as u r not fulfiling the condition of sec 54...whole exemption amount will be reversed.....u have to buit a house and keep it for a minimum 3years........

Guest

A house built in 1977 was sold in May 2008 for Rs.85.00 lacs after indexation the indexed cost was 36.00 lacs and the capital gain was 49.00.

Exemption u/s 54 was taken being amount invested in purchase of residential plot for Rs.53.65 lacs. In Nov 2008.

No construction has been done on this plot and now I want to sell this plot and buy a house from the sale proceeds. What is the position regarding exemption already availed under Capital Gains. Shall I have to pay tax now ? What shall be the position as regards to the second transaction i.e. sale of plot and purchase of house?